ABUJA, Nigeria — The federal government is pursuing $1.5 billion in new financing from the World Bank for climate resilience, social protection, and early childhood development as Nigeria’s public debt rises to N166.79 trillion.
The proposed financing consists of three $500 million facilities that remain at different stages of preparation and have not yet received final approval from the World Bank’s board, according to project documents reviewed by Nigerian news organisations.
On Monday, September 28, 2026, the proposals emerged days after the Debt Management Office released figures showing that Nigeria’s total public debt had increased to N166.79 trillion as of June 30.
The debt was N159.35 trillion at the end of March, meaning it increased by N7.44 trillion, or about 4.7 per cent, during the second quarter.
Compared with June 2025, when debt stood at N152.40 trillion, the increase was N14.39 trillion, or 9.44 per cent.
In dollar terms, Nigeria’s public debt rose from $99.66 billion in June 2025 to $120.93 billion a year later, an increase of $21.27 billion, or 21.35 per cent.
The proposed World Bank financing was first detailed by Punch, citing World Bank documents.
$500 Million Sought for Climate Programme
The proposal furthest along in the approval process is an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL.
The World Bank has tentatively scheduled the financing for consideration by its board on October 29, 2026.
Nigeria would be the borrower, while the Federal Ministry of Environment would oversee implementation.
ACReSAL already has $700 million in World Bank financing.
The proposed additional credit would increase that amount to $1.2 billion.
The programme operates in 19 northern states and the Federal Capital Territory and is intended to address land degradation, water shortages, erosion, flooding, and other climate-related pressures affecting communities and agriculture.
Under the proposed expansion, $310 million would be directed towards dryland management, $165 million towards community climate resilience, and $25 million towards institutional strengthening and project management.
The financing is expected to come through the International Development Association, the World Bank arm that provides concessional financing to lower-income countries.
Two More $500 Million Programmes Planned
A second proposed facility would provide $500 million for the Household Prosperity and Empowerment-Social Protection Project, or HOPE-SP.
The project is scheduled for a technical design review on October 30, 2026, while World Bank board consideration is tentatively set for March 16, 2027.
The Federal Ministry of Finance would be the borrower, with the Federal Ministry of Humanitarian Affairs and Poverty Reduction expected to implement the programme.
The financing would comprise a $420 million results-based component and $80 million in investment-project financing.
The programme is intended to expand regular assistance for poor and vulnerable households, including conditional and unconditional cash transfers, while strengthening Nigeria’s social-protection infrastructure.
Proposed measures include improvements to the social registry and greater integration of the National Identification Number into the system.
World Bank estimates cited in the project reporting put the proportion of Nigerians living in poverty at 56 per cent in 2023, up from 40 per cent in 2019, with the figure projected to reach 62.5 per cent in 2026.
A third proposed $500 million facility would fund the Nigeria Early Childhood Development programme.
Its technical design review is also scheduled for October 30, while tentative board consideration is set for March 15, 2027.
The Federal Ministry of Finance would be the borrower, and the Federal Ministry of Budget and Economic Planning is expected to implement the programme.
The programme would operate across all 36 states and the Federal Capital Territory, providing services involving health, nutrition, early learning, childcare, water, and sanitation for children from birth through age five.
The proposed $500 million credit would include $400 million under a programme-for-results arrangement and $100 million in investment-project financing.
World Bank figures cited in the project documents say 40 per cent of Nigerian children under five are stunted, fewer than half are developmentally on track, and 36 per cent of children aged 36 to 59 months participate in organised early learning.
Debt Rises in Naira and Dollar Terms
The proposed facilities are being prepared as Nigeria’s public-debt stock continues to expand.
According to the latest figures published by the Debt Management Office, domestic debt stood at N91.59 trillion at the end of June, accounting for 54.91 per cent of the country’s total public debt.
External debt was N75.20 trillion, or 45.09 per cent of the total. In dollar terms, external debt stood at $54.52 billion.
Federal government domestic obligations amounted to about N87 trillion, while the states and the Federal Capital Territory owed N4.59 trillion domestically.
Federal government external liabilities were N65.77 trillion, compared with N9.42 trillion attributed to the states and the FCT.
The DMO valued the June 2026 debt stock using an exchange rate of N1,379.1842 to the dollar, compared with N1,529.2105 a year earlier.
The change in the exchange rate partly accounts for the difference between the rates of increase when the debt is measured in naira and dollars.
The three World Bank facilities remain proposed financing.
Their inclusion in the bank’s project pipeline does not constitute final approval or disbursement.
